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Finance Minister Asad Umar chairs the meeting of the Economic Coordination Committee of the
cabinet held in Islamabad. —APP

The Economic Coordination Committee of the cabinet on Tuesday decided to postpone the decision regarding the expected increase in power tariff till its next meeting, Radio Pakistan reported.

After having raised gas prices, the PTI government has been working on a proposal to increase electricity tariff by an average of Rs2 per unit to partially finance the ever-rising circular debt.

The meeting, chaired by Finance Minister Asad Umer, directed that 100 per cent collection of electricity bills should be ensured and line losses be reduced to the maximum. It also directed the National Electric Power Regulatory Authority (Nepra) and the Power Division to prepare a comprehensive plan for the next five years.

The meeting took up a two-point agenda — electricity tariff and presentation on LNG (liquefied natural gas) terminals — sought by the power division and petroleum division, respectively.

While announcing up to 143pc increase in gas prices last week, Petroleum Minister Ghulam Sarwar Khan had said his ministry was not satisfied with LNG matters finalised by the previous government and “seriously examining” issues relating to LNG terminals.

He said the petroleum ministry, National Accountability Bureau and Federal Investigation Agency were simultaneously and thoroughly working on the subject as one of the two terminals was running on full capacity while the other was operating at below capacity since their inception. He said a report on faults and weaknesses of LNG mechanism would be submitted to the ECC for addressing them.

Moreover, the power division has been seeking an approval for implementation of Nepra determination suggesting a gross increase of Rs3.90 per unit in consumer tariff under relaxed benchmarks for ex-Wapda distribution companies (Discos).

After taking into account the amount of subsidy earmarked in the budget, the net increase in average consumer tariff has been worked out at about Rs2 per unit with a total impact of Rs200 billion.

Comments (9) Closed

It is not a U-turn as it wasn't decided earlier that electricity prices will increase.

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Lahori kid

Sep 26, 2018 01:46am

100 per cent collection of electricity bills should be ensured
This is one goal no government will ever achieve. Electricity and cable theft is mighty common even here in the United States.

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Brighton rodeo

Sep 26, 2018 01:47am

Prevent theft and losses first before consideration of tarrif.

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Sab Se Pehle Pakistan

Sep 26, 2018 02:04am

If Naya Pakistan government increases the price for electricity after the increase in gas charges. I am afraid people will completely lose confidence in this new setup. Naya Pakistan government promised to bring back the looted money and accountability across the board. To date zero arrests have been made and not a single penny has been recovered. Naya Pakistan government can only squeeze the already extremely hardened commoners. While Corruption Mafias are getting their NROs in order and enjoying VIP protocols.

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m

Sep 26, 2018 06:17am

wasn't the gas tariff increase done before PTI came in to power. it was during the interim govt. so why pti is being blamed for it now??

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Shy Guy

Sep 26, 2018 06:59am

Does it also include CPEC security.

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Mirza

Sep 26, 2018 07:04am

People always pt teir best foot forward and if this is his best, then we should not expect any miracles from Asad Umar.

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Ravi

Sep 26, 2018 07:37am

This govt backtracks all decisions taken so far

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Vikas

Sep 26, 2018 07:32pm

How often does this committee meet? I mean their next meeting would be in months or quarters or annual?